President Donald Trump has again threatened Canada in the trade war, repeating that the neighbouring country should become "our cherished 51st state". The US leader said this weekend that he is imposing 25% tariffs on imports from Canada and Mexico. The two countries hit back with retaliatory tariffs, with their respective leaders announcing the move on Saturday night. Speaking on his Truth Social platform on Sunday afternoon, Mr Trump said: "We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason.

"We don't need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.". He claimed that without the "massive subsidy" Canada "ceases to exist as a viable country". He added: "Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada - AND NO TARIFFS!". Follow our channel and never miss an update.

The Trump administration had said that the tariffs aimed to stop the spread and manufacturing of the opioid fentanyl, as well as pressuring America's neighbours to limit illegal immigration to the US. But it risks a trade war and higher prices for American consumers. Economists argue supply chains will be disrupted and businesses will suffer increased costs - leading to an overall rise in prices. Both Mexico and Canada rely heavily on their imports and exports, which make up around 70% of their Gross Domestic Products (GDPs), putting them at even greater risk from the new tariffs.

Read more:Why has Trump targeted Mexico and Canada?How Donald Trump's tariffs could impact consumers. Announcing the retaliatory tariffs on Saturday night, Canadian Prime Minister Justin Trudeau delivered a passionate message to American consumers. "It will have real consequences for you, the American people," he said, saying it would result in higher prices on groceries and other goods. Mr Trudeau reminded Americans that Canadian troops fought alongside them in Afghanistan and helped them respond to domestic crises including the wildfires in California and Hurricane Katrina.

Be the first to get Breaking News. Install the Sky News app for free. Meanwhile in Mexico, President Claudia Sheinbaum said: "We categorically reject the White House's slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory.". "If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don't do and the laundering of money that this illegal activity generates that has done so much harm to its population.".